Financial News: U.S. Personal Income Climbs 0.4% In December, More

U.S. Personal Income Climbs 0.4% In December, More Than Expected

01/29/2018 - 08:57:00 (RTTNews)

(RTTNews) - Personal income in the U.S. rose by slightly more than expected in the month of December, according to a report released by the Commerce Department on Monday, while personal spending increased in line with estimates.

The Commerce Department said personal income climbed by 0.4 percent in December after rising by 0.3 percent in November. Economists had expected another 0.3 percent increase.

Disposable personal income, or personal income less personal current taxes, rose by 0.3 percent in December, matching the increase seen in the previous month.

The report also said personal spending climbed by 0.4 percent in December following a 0.8 percent increase in November. The spending growth matched expectations.

Real spending, which is adjusted to remove price changes, rose by 0.3 percent in December after climbing by 0.5 percent in the previous month.

While income and spending rose at the same rate, personal saving as a percentage of disposable personal income dipped to 2.4 percent in December from 2.5 percent in November.

A reading on inflation said to be preferred by the Federal Reserve showed the annual rate of core consumer price growth held at 1.5 percent in December.